4 Steps to Buying a Home at State Auctions
– Step 1: Find the right home for you
– Step 2: Visit the home
– Step 3: Bid on the property
– Step 4: If you win the auction
The government regularly sells real estate that has become government property due to foreclosure or to get rid of some unused assets. The sale can be made by auction, by bidding or both.
First of all, you must go to the state auction website to search for the property you wish to purchase. Then, you must contact the notary office in charge of the sale.
Here are the detailed steps to follow to buy a home at a state auction.
1. Find the property that suits you
Go to the state auction website.
– Go to the state auction website here.
– Use the search engine to find the right home for you:
◦ You can search on a particular province or all of Canada.
◦ You can search for one specific type of property or any property.
Note: if you do not find what you are looking for, you can create an alert on the site.
View housing information
Once you start your search, the list of homes for sale will scroll before your eyes. Click on the “more info” link. This link will take you to the fact sheet describing the sale. Here you will learn:
– the dates and locations of the sale
– the address of the lot;
– the dates of visits;
– the living area, the lot, the number of rooms and other information;
– the mode of sale;
– the type of occupation of the property (vacant or occupied);
– the address of the notary’s office to contact.
2. Visit the property
All real and personal property sold through a government auction is unsecured. When a person bids, he/she is deemed to have taken cognizance of the item’s condition.
If he refuses to take delivery, the penalties could be higher than the price of the sale itself. Contact the notary’s office to make an appointment for a visit.
3. Bid on it
If it is a bidding auction
If it is a bidding auction, you can only submit your bid in writing to the notary in charge of the sale.
1. Download and complete the bidding document.
2. Indicate the amount of your bid.
3. Enclose a check for 20% of the starting price.
4. Send it by registered mail with the notary’s office return receipt.
On the day of the sale, the notary opens all the bids. The highest bid wins.
If it is an auction
Be present at the auction room at the specified date and time, and deposit 20% of the starting price. Each interested person bids higher, and the highest bid wins.
If it is a sale by auction and bidding
You can choose to buy in person or by bidding.
On the day of the sale, the notary reads the bids and listens to the offers of those present. If no one outbids you, you win the deal.
4. If you win the auction
If you win the auction, you must pay the total amount due by the eighth day, by:
– bank check;
– bank transfer;
– credit card.
Note: if you choose to pay by credit card, remember to de-cap it. Any payment that does not arrive in time will result in the cancellation of the sale. You will lose your deposit and may incur financial penalties.
Hope these 4 steps to buying a home at state auctions help you get your new home soon! Remember to write your comments below.